KLAW Blog Posted July 11, 2018 Report Share Posted July 11, 2018 What are the capitalization requirements? Applicants will be required to demonstrate capitalization amounts to operate and maintain the proposed marihuana facility as follows: (a) Grower: Class A – $150,000 (b) Grower: Class B – $300,000 (c) Grower: Class C – $500,000 (d) Processor: $300,000 (e) Provisioning Center: $300,000 (f) Secure Transporter: $200,000 (g) Safety Compliance Facility: $200,000 The capitalization sources can be demonstrated as follows: At least 25% is in liquid assets. Liquid assets include assets easily convertible to cash. Examples of liquid assets may include, cash, marihuana inventory (in compliance with the administrative rules), CD’s, 401(k), stocks, and bonds. Remaining capitalization may be evidenced in either additional liquid assets or non-liquid forms, for example equity in real property, supplies, equipment, and fixtures. Evidence must be provided proving that there is no lien or encumbrance on the asset provided as a source of capitalization. Additionally, the capitalization amounts and sources must be validated by CPA-attested financial statements Refer to Emergency Administrative rule 11 for additional information on capitalization. Government Site Komorn Law has represented numerous clients through the legal chaos of starting up a business in the Michigan Medical Marihuana Industry. Contact Us For More Information. 800-656-3557 The post LARA-MMFLA-What are the capitalization requirements appeared first on Komorn Law. View the full article Quote Link to comment Share on other sites More sharing options...
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